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Texas Transaction Guide--Legal Forms
Copyright 2017, Matthew Bender & Company, Inc., a member of the LexisNexis Group.

17-77B Texas Transaction Guide--Legal Forms 77B.syn


Division Orders


Herbert S. Kendrick;John J. Kendrick, Jr.;and Matthew Bender's Editorial Staff

Chapter Summary


This chapter is a guide to the preparation of division orders to be used for the apportionment of payments for the production of oil and gas. The chapter also covers the preparation of transfer orders that are used when an ownership interest in oil and gas is conveyed by a party whose interest is subject to a division order.

It also includes the preparation of rental division orders for the payment of delay rentals to lessors under an oil and gas lease. The legal background part of the chapter provides a discussion of the purpose and effect of the division order, including the legal relationship between a division order and an oil and gas lease. It also discusses the statutory provisions that create a security interest in favor of an oil and gas interest owner against the purchaser who issues a division order.

The procedural guide in the chapter includes a list of the considerations that should precede the drafting of a division order. The forms section of the chapter contains forms for oil, gas, and oil and gas division orders, as well as forms for rental division orders and transfer orders.

Texas Transaction Guide: Legal Forms is the most comprehensive and frequently updated resource on Texas legal transactions. It covers the entire transaction spectrum: business entities, wills and trusts, commercial transactions, real estate transactions, and personal transactions. Each chapter provides a chapter scope note, detailed outline, research guide, legal background, practice guide, and forms with commentaries on usage.


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Other chapters containing related discussions include Chapter 77, Oil and Gas Leases, Chapter 77A, Oil and Gas Operating Agreements, and Chapter 81, Environmental Considerations for Property Transactions.


See Dorsaneo, Texas Litigation Guide (Matthew Bender), for detailed analysis of complex civil litigation issues, as well as procedural checklists and time-tested forms for pre-trial, trial, and appellate practice.

See Kuntz, Law of Oil and Gas (Matthew Bender) for an exhaustive survey of oil and gas conveyancing and operations, including detailed examination of insurance in connection with use and storage of oil and gas; implied covenants and duties created by the oil and gas lease; lease transfers and interests commonly carved out of leases in modern business transactions; governmental regulation the leasing and sale of public land; securities; and the production, sale and transportation of oil and gas.

See Brown, The Law of Oil and Gas Leases (Matthew Bender) for full coverage oil and gas lease law, including issues regarding assignment clauses, dry hole and lease extension clauses, entirety clauses, force majeure clauses, habendum clauses, and warranty clauses; plus review of key court opinions, thorough annotations, descriptions and comparisons of various state laws, special clauses in lease agreements, and escrow agreements.

See Oil and Gas Law (Matthew Bender) for coverage of conveyancing, oil and gas leases, implied convenants, pooling and unitization, division and transfer orders, gas purchase contracts.
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